In 2019, I undertook the laborious task of analyzing the national budget to count how many individuals were receiving funds from various social programs, pensions, and retirements funded by the state. My findings revealed that around 19 million people were receiving monthly payments from the government, a figure that seemed unsustainable given the number of individuals contributing through formal employment.
Over time, the Congressional Budget Office reported an increase in social benefits recipients from 6.75 million in 2008 to 16 million by 2021. This figure does not account for public employees, retirees, or pensioners. Notably, during Cristina Fernández de Kirchner’s presidency, about 3.5 million beneficiaries entered the system without having contributed, exacerbating the strain on the pension system and affecting those who had consistently paid into it.
This shift has led to a situation where many live off others’ hard work, undermining the culture of labor and giving rise to what has been termed the “great business of poverty.” This term has garnered more attention recently due to the actions of certain social movements.
Upon reviewing the 2023 Social Programs Guide, I discovered that there are 202 distinct programs at the national level, distributed across various ministries and public agencies. This number does not include programs run by provinces and municipalities.
One social program I have been closely following since 2017 is the labor disability pensions. This has recently become a focal point for Minister Federico Sturzenegger, who is reportedly working on reforms related to this issue. Evidence of financial misuse has emerged, particularly concerning the evolution of disability pension beneficiaries growing from 72,156 in 1999 to 1,227,290 in 2024, despite there being no wars, catastrophes, or natural disasters to account for such a drastic increase. This surge represented about 1.1% of the country’s GDP.
To put this figure in context, during World War II, the United States saw 12.2 million soldiers, with about 407,000 fatalities and 671,000 injuries. It is hard to believe that Argentina, under peaceful conditions, has shown such a rapid increase in disability claims. The real casualties here stem from populism and corruption.
The alarming rise in beneficiaries can largely be attributed to collusion between local politicians and medical professionals, who have been known to recruit individuals in villages to secure disability pensions in exchange for fixed payments for each certificate issued.
Many people wonder if ATE (the Argentine Workers’ Union) is manipulating numerous programs and profiting from labor disability pensions. This question deserves governmental investigation.
The system could greatly benefit from a reevaluation of the 350 disability boards operating nationwide, where interdisciplinary teams assess applicants’ skill deficits. Furthermore, there should be stringent checks to ensure that only those in dire need receive aid, using the National Tax and Social Identification System (Sintys), which can identify the ownership of luxury items and real estate.
Cleaning up this corrupt environment is possible if there is genuine political will to do so. The resources are available.
The Cambiemos government once attempted similar reforms but quickly backed down when faced with street protests claiming that the removal of benefits would leave disabled individuals helpless—without supporting evidence.
Indeed, there are valid cases of labor disability, but they are the minority. As monthly cuts of 30,000 ineligible plans were initiated, protests erupted on Avenida 9 de Julio, leading the then-government to halt the adjustment plan.
According to the 2024 budget, $1.6 trillion was allocated for labor disability pensions, translating to approximately $1.1 billion, with an average monthly payment of $108,000 per beneficiary. This amount, multiplied by families claiming such pensions, translates into a lifestyle funded by taxpayers yet devoid of work.
The new government, La Libertad Avanza, has significant work ahead to address corruption and reduce public spending. It is crucial that this time, they do not reverse their position, as was the case in 2017. Furthermore, it is essential to reassess the 202 social programs, many of which are under suspicion for corrupt practices.
The narrative of social solidarity in Argentina has been marred by Kirchnerist populism, which not only eroded the work ethic but also fostered widespread corruption and electoral manipulation.
We must not be swayed by emotional appeals regarding social sensitivity. At the heart of this issue lies a network of political corruption that the new government must dismantle as a first step in countering the deceptive rhetoric of supposedly empathetic politicians and economists.
Image and News Source: https://www.infobae.com/opinion/2024/07/23/la-corrupcion-en-los-subsidios-por-invalidez-laboral/
